With news headlines dominated by rising inflation, the cost-of-living crisis and higher than-ever property prices, things can often look bleak for young people living in the UK. A recent study revealed that UK public sector wages fell compared to inflation. However, many young people remain optimistic about their financial future, and there are steps that young adults can take to help gain financial success. The UK offers many opportunities to people looking to better their lives. Although it takes hard work, it’s possible for young people to start working towards financial freedom.
Studying Finance
Education, in general, is one of the best ways to increase your chances of financial success. Young people should be investing in themselves and their own skills, ensuring that they can build a successful career. In the UK, finance remains one of the most valuable subjects to study in higher education. This is because not only is the finance industry better paying than many other industries, but it also means you’ll learn valuable lessons in finance.
An education in finance can be applied across many different areas too, so you have many options after graduation. As an example, a managerial finance online course can give you the tools you need to make informed managerial and investment decisions, gaining a wider understanding of the modern finance landscape. These are important skills for any business leader to have and this course can be a positive addition to your CV.
Studying finance can be done outside of the classroom too, with a growing number of young people choosing to learn online. Aside from online courses, there are numerous websites, videos and other content that’s dedicated to providing young people with an understanding of finance. This kind of information won’t necessarily lead to financial success, but it’s useful for learning more about financial concepts.
Picking Up Basic Habits in Personal Finance
When it comes to personal finance, making or breaking habits can be the difference between success and failure. A lot of young adults can often fall into bad financial habits that can lead to high risk or debt, trapping them in a cycle of living from one payday to the next. The most important step to getting out of this cycle is to tackle debt and establish good financial habits.
While borrowing money isn’t always a bad thing, it can lead to issues if you’re unable to pay it off and the interest payments cause the debt to grow. Having a credit card and building your credit score is advised, but you should always pay off the full amount due each month to avoid bad debt. If you have accrued debt, you need to come up with a strategy to pay it off. This involves ranking the debts by highest to lowest interest rates and paying off the highest first.
Good personal finance habits include budgeting and saving. If you want to find financial success, creating a budget that includes all of your outgoings and income is vital. Make sure you understand how much you’re making each month after tax and calculate all of your expenditures. This is a great way to eliminate unnecessary costs and allows you to set some money aside each month for your savings.
Planning for the Future
Having a plan is one of the best ways to ensure success in any area of life. If you want to be financially successful, you should start with a plan. Your financial goals could be buying a house, saving for retirement or funding secondary education. Whatever your goals are, setting them out and coming up with a timeline will help you achieve them. Be sure to choose goals that are realistic, and look at what you need to do to accomplish them within the timeline you’ve set.
